1:1 Bonus Share Announced By This Micro-Cap Company; Multibagger Stock With 3,100 Per Cent Returns
The stock gave multibagger returns of 540 per cent in just 1 year and a whopping of over 3,100 per cent in 5 years.
Rajeshwari Cans Ltd proposes to issue bonus shares in a 1:1 ratio, meaning eligible shareholders will receive one new fully paid-up equity share of Rs10 for every existing share they hold. This bonus issue will be funded by capitalizing securities premiums received in cash and retained earnings. The company also seeks shareholder approval to increase its authorized capital from Rs 10.5 crore to Rs 11 crore.
Rajeshwari Cans Ltd, established in 2018, specializes in the production of containers & packaging products. The company primarily manufactures round printed tin containers, ranging in size from 50 grams/millilitres to 5 kilograms/litres, which are widely used for packaging tobacco and snuff. Additionally, Rajeshwari Cans Ltd produces MS Drums with a capacity of 5 to 30 kilograms. The promoters of the company own a 61.57 per cent stake and the general public owns 38.43 per cent as of September 2024.
DSIJ’s ‘Micro Marvel' service recommends micro-cap stocks with the potential to grow multifold in long run. If this interests you, do download the service details here.
The company has a market cap of Rs 352.5 crore. According to half-yearly results, the net sales increased by 27.3 per cent to Rs 19.65 crore and net profit increased 63 by per cent to Rs 1.06 crore in H1FY25 compared to H1FY24. In its annual results, the net sales increased by 6 per cent to Rs 34.58 crore and net profit increased by 25.5 per cent to Rs 1.33 crore in FY24 compared to FY23. The stock gave multibagger returns of 540 per cent in just 1 year and a whopping of over 3,100 per cent in 5 years. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.